Keys to the Modernisation of Digital Ecosystem Regulation in Colombia - Copyright 2016 GSM Association
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Keys to the Modernisation
of Digital Ecosystem
Regulation in Colombia
Copyright © 2016 GSM Association
REGULATORY MODERNISATION: COLOMBIA
1.
PROMOTE
2.
LEVEL THE
3.
ENHANCE USER
4.
CREATE A SINGLE
5.
REMOVE
CONVERGENCE PLAYING FIELD EXPERIENCE CONVERGED SECTOR-SPECIFIC
AND REMOVE IN THE DIGITAL BY ENCOURAGING REGULATOR TAXES TO
ARTIFICIAL ECOSYSTEM TO COMPETITION TO ACT ACROSS ALLOW GREATER
BARRIERS TO GIVE USERS THE IN QUALITY THE DIGITAL AFFORDABILITY AND
MAXIMISE THE SAME LEVEL OF OF SERVICE ECOSYSTEM UNIVERSALISATION
BENEFITS PROTECTION OF SERVICE
Update the 2009 ICT Law 2009 Regulation should avoid Regulation of quality Amending the institutional To reduce affordability barriers,
RECOMMENDATIONS
FOR A NEW DIGITAL
FRAMEWORK
by incorporating: distortions that are artificially of service must focus on framework to create a single the Colombian government could
harmful for some providers to creating transparency in the regulator by merging CRC remove VAT on mobile handsets
The television service. and smartphones, similar to the
the detriment of others. information available to users, and ANTV will give rise to a
General guidelines for comparable to and in line with convergent regulator that can approach adopted for laptops
To encourage innovation and and computers.
modernising regulation. international standards and analyse, regulate and promote
competition, regulation based
A unified body that the market context. the harmonious development In such a strategic sector for the
on minimum criteria should
understands all aspects of the be established, with the same There should be a guarantee of the entire digital ecosystem. future development of the country,
digital ecosystem. This will allow conditions for all players. that new digital ecosystem Under this premise, such a taxation on telecommunications
for a more holistic overview so services will give users the regulator must also incorporate should not distort consumption
Regulation must ensure that the ANE, which administers and investment decisions.
that regulation can be better same level of protection and
new digital ecosystem services one of the key resources for
aligned with the dynamism of transparency as existing services. Gradually reduce or remove
give users the same level of providing telecommunications
technological changes. certain targeted taxes. Abolishing
protection and transparency as Any ex ante regulation of and broadcasting services.
existing services. quality should be accompanied ANTV should remain solely as a consumption tax on voice services
by studies to assess the cost- content regulator. could connect more than 310,000
benefit ratio based on real data Colombians to mobile internet.
and market studies. Using these All the stakeholders in the digital
studies, the utility to consumers ecosystem should contribute
can be evaluated when a specific to FONTIC, and use of the fund
regulation is implemented. should focus on universalising
internet service.
A rethink of the need for FONTIC
and its purpose is necessary
to ensure it aims to extend ICT
services into unconnected areas,
avoiding asymmetric tax treatment
of those who already meet
their obligations through other
regulations (e.g. through spectrum
licensing conditions).
There will be greater choice Regulation on a level playing Consumers will have greater The existence of a single With a transparent, rational
BENEFITS
FOR USERS
of providers for a single service field that treats all providers the transparency to be able to institution must be reflected in taxation system, the prices
or substitute services, leading same will encourage competition, decide which products and coherent decisions that include the of services will decrease and
entire ecosystem rather than just
to an increase in consumer generating consumer surplus in providers best suit them some elements. It will also maximise consumption will increase,
surplus through lower prices the form of price, supply, quality, depending on their needs. the benefits of convergence by incorporating more people into
and higher quality. diversity and innovation. promoting it and removing artificial digital services.
barriers.
Tax revenues should not
Decision making will be much experience major changes,
quicker and easier, responding
appropriately to a sector in constant because when available revenue
evolution. There will be fewer increases, consumption also
barriers to entry and operation, and increases, leading to more revenue
greater diversity in the provision of from consumption tax.
services, resulting in incentives for
innovation and competition.
REGULATORY MODERNISATION: COLOMBIA REGULATORY MODERNISATION: COLOMBIA
Keys to the Modernisation
of Digital Ecosystem Regulation
in Colombia
Application
(Information
processing)
User
Device Communications Content
(Information (Information
exhange network) storage)
The technological progress resulting communications) that multiply, almost
from digitisation has generated endlessly, the array of choices to Future-proof regulation
tremendous benefits for consumers satisfy consumer needs. Colombia has a modern legal and The fast-paced dynamism of the digital
around the world. Primarily leveraged regulatory framework. It was one of ecosystem complicates the task of
by mobile, access to digital content is 2. Economies of scale and scope: the first countries in Latin America to establishing rules capable of maintaining
becoming universal, with more than The ubiquity of the internet allows incorporate the concept of converging their validity for any length of time. It
three billion people connecting through increasingly better services to be telecommunications and IT technologies. is evident in Colombia that stringent
mobile devices every day. Colombia made available to companies and But nearly 10 years have passed since regulation can distort the market and
has 52 million mobile connections and users at constantly falling prices, or this legislation was originally conceived, affect the emergence of new products
almost 13 million unique mobile internet even free of charge. in a different technological context from and services. We are currently seeing
users, indicating that access is starting today. To stay ahead internationally, two very specific harmful outcomes of
to penetrate lower income levels. 3. Dynamism: The constant evolution legislators should consider updating some regulatory policies included in the
of the digital ecosystem means that and future-proofing the legal framework 2009 ICT Law:
Three key characteristics of the both new and existing companies to ensure it captures all aspects of
new digital ecosystem are driving have powerful incentives to invest technological convergence. The aim • Regulatory discrimination: There is
this progress1: and innovate, and therefore to create should be to create clear benefits for a clear, notable difference in the way
new products that satisfy user needs citizens and companies, who constantly different sectors currently providing
1. Modularity: Digital products more efficiently (cheaper and/or demand more and better connectivity. similar or even identical services
and services are made up of a better products). At the same time it are regulated2. This is the case of
combination of complementary inputs generates more competition as a result traditional (voice and text) versus IP
(applications, content, devices and of entry into neighbouring markets. communication services.
1
For more information, see “A New Regulatory Framework for the Digital Ecosystem” 2
For more information, see “Competition Policy in the Digital Age” and
http://www.gsma.com/publicpolicy/new-regulatory-framework “Resetting competition policy frameworks for the digital ecosystem”
4 5
REGULATORY MODERNISATION: COLOMBIA
CONVERGENCE:
KEYS TO THE MODERNISATION OF DIGITAL
ECOSYSTEM REGULATION IN COLOMBIA
• Static regulation in a dynamic market: competition in the digital ecosystem
Today the regulatory framework means that legacy regulation no longer
of most countries in the region, achieves the objective it was created
including Colombia, is prescriptive for. In other cases, such as privacy Maximise the benefits
or ex ante, as it lays down the rules
under which companies will operate,
and cyber security, a new regulatory
framework needs to be developed.
of convergence by removing
similar to the 2003 European Union artificial barriers
guidelines3 (ex ante determination of These principles must not be confused
relevant markets). However, the EU with a lack of regulation. The aim is
1
Recommendation has been revised to have a minimum of general ex-ante
and updated, leaving only four principles complemented by ex-post
wholesale markets susceptible to regulation to allow intervention when
this type of regulation. necessary, to protect user rights,
competition and data privacy.
To keep pace with the growth of
the digital ecosystem and maximise The new regulatory framework to
the socioeconomic benefits of this emerge from this will be technology-
vibrant industry, we believe that and market-neutral. It will be cost-
Colombia should move towards effective, as it will aim to achieve public
“future-proof” regulation based on policy goals at the lowest possible
three specific principles: cost. It must also be flexible, because it 5 2
will keep pace with technological and
1. Functionality-based regulation: market innovation while preserving and
Design the regulatory framework enhancing regulators' ability to achieve Optimisation
to achieve the objectives pursued their objectives. Most importantly, this User rights
of innovation
in the most efficient way, without new framework will allow consumers to and benefits
regard to industry structure, use digital tools and be protected by and
technologies or legacy regulatory regulation that is tailored to their needs investments
regimes, incorporating all elements and maximises the benefits of access to
of the digital ecosystem. the digital ecosystem. Remove sector-specific Level the playing field
taxes to allow greater MAIN
OBJECTIVES
in the digital ecosystem
2. Dynamic regulation: The dynamism
of this type of market means that affordability and to give users the same
regulation must have general universalisation of Data and level of protection
principles, be flexible and not hinder
service Competitive
the emergence of new services. information
environment
protection
3. Bottom-up regulation: In some cases
regulation may need to be rethought
from the ground up so the legacy of
outdated rules does not continue to
adversely affect users. In many cases,
4 3
3
See “Commission Recommendation of 11 February 2003 on relevant product and service markets within the electronic communications
sector susceptible to ex ante regulation in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common
regulatory framework for electronic communication networks and services”.
Create a single converged Enhance user experience
6
regulator to act across the by encouraging competition
digital ecosystem in quality of service
REGULATORY MODERNISATION: COLOMBIA REGULATORY MODERNISATION: COLOMBIA
PUBLIC POLICY RECOMMENDATION
1 Promote convergence and
remove artificial barriers to
maximise the benefits
CONTENT
RIGHTS
Premium
(video, sport,
music, publishing,
gaming, etc.)
Made for digital
(professional
ONLINE
SERVICES
E-retail
E-travel
Video
Music Publishing
Gaming
TECHNOLOGY
AND SERVICES
Design
and hosting
Payment platforms
M2M platforms
Advertising
CONNECTIVITY
Mobile access
Fixed access
Satellite
USER
INTERFACE
Hardware /
devices
Software /
systems
USER
Gambling Internet analytics
Digital services are inherently In Colombia, the ICT Law (1341/2009) content, user- Social and Managed
convergent. One of the main objectives covers several links of the digital generated
content) community bandwidth
of any change to the current framework ecosystem chain, including audio Communications and content
is to acknowledge the advent of a broadcasting. However, television Search
Information and
delivery INTERNET
convergent market in which the only services are still governed by legacy VALUE
reference
limitation for providing services using regulation. In relation to content,
a particular type of network should be services and applications, this law
Cloud services CHAIN
Other e-services
technology, rather than prescriptive guarantees access to networks but
regulation. If more services can be is unclear about the provision of
delivered through a single technology, OTT services, which compete with
supply and competition will increase, traditional ICT and television services.
generating greater benefits for
consumers in terms of diversity, quality
and price. From the point of view of
the service provider, a more effectively Principles of
used network will mean achieving lower regulatory modernisation
unit costs and a more intensive use of Public policy BENEFITS
capital, with a corresponding rise
in productivity.
Technological neutrality is essential recommendations FOR USERS
to achieve regulatory modernisation
capable of encouraging innovation Update the 2009 ICT Law
The convergence of services typically and investment. It is becoming less 2009 by incorporating:
regarded as telecommunications easy to justify giving different legal There will be greater choice
• The television service.
(voice, messages, data) has occurred treatment to sectors and services of providers for a single service
gradually, without a technological • General guidelines for
which, as far as users are concerned, modernising regulation. or substitute services, leading
barrier. In this respect, Colombia is are increasingly similar. to an increase in consumer
• A unified body that understands all
one of the countries that have allowed aspects of the digital ecosystem. This will surplus through lower prices
convergence of traditional services A prescriptive rule applied ex ante allow for a more holistic overview so that and higher quality.
and unrestricted entry of companies endangers dynamic, flexible regulation regulation can be better aligned with the
offering over the top (OTT) services. capable of adjusting to the changes of a dynamism of technological changes.
rapidly evolving market. The regulatory
framework must reduce asymmetries
between digital services, allowing
for an ecosystem in which the value
chain can grow4, segments are more
interdependent, and where regulation
should keep pace with the harmonious
development of the ecosystem rather
than limiting its evolution.
4
For more information, see The Internet Value Chain, GSMA http://www.gsma.com/publicpolicy/internet-value-chain
8 9
REGULATORY MODERNISATION: COLOMBIA REGULATORY MODERNISATION: COLOMBIA
PUBLIC POLICY RECOMMENDATION
2
EXAMPLES OF REGULATORY DISCRIMINATION
ISSUE APPLICATIONS COMMUNICATIONS CONTENT DEVICES
Level the playing field in the Consumer
Protection
General CP law Specific regulation: portability,
opt-in services, specific consumer
Age-related, violence, sex;
otherwise general CP law
General
CP law
digital ecosystem to give users
protection offices
Competition General Industry specific obligations and Compulsory licensing for General
competition law regulatory institutions some content; otherwise competition law
the same level of protection
Enforcement
Asymmetric access regulation to general competition law
and
SMP operators Restrictions on
Economic Retail price regulation and tariffing advertising time
Regulation Restrictions on foreign
ownership
Users consume communications services Asymmetries can push up the prices
because of the utility they generate of services only for some providers, e.g. Intellectual General IP/ General IP law Mandated licensing of General IP law
for them, regardless of the providing locally provided services versus services Property competition law some content Mandated licensing
Specific regulation of IP for IP included in
network. Most services that consumers imported through the network, because rights management some standards
perceive to be the same are provided by the network crosses geographical Compulsory levies
different networks and providers. From borders unhindered. Obvious examples to content right
owners
the user's point of view they are equal of asymmetries include taxation on the
services, or perfect substitutes. service and the profit, social security
and labour charges and, very Privacy General Industry specific regulation Specific regulation (e.g. General privacy
However, from a regulatory perspective, significantly because of their direct and Data privacy regulation (e.g. “CPNI”); license conditions images of minors; “right to regulation
be forgotten”)
services are not treated the same. The impact on the total cost of mobile, Protection
quality of a single service can be subject sector-specific taxes and contributions
Resource None Regulated allocation of spectrum, Regulated allocation of None
to different rules depending on who the to universal service funds. Management numbering and access to property spectrum for broadcasters
provider is and which network provides (rights of way), regulation of
technology transitions
it (e.g. traditional voice services versus
voice over IP). The situation is similar Principles of Security Data requests by Legal interception of communications State secrets Little or no
with licensing, reporting requirements regulatory modernisation authorities Retention of call data records
Interoperability with military networks
regulation regulation
Current battle
and collaboration with the legal system. over encryption
Under the principle that regulation Taxes Sales tax with potential Sales tax Sales tax Little or no
must be functionality-based, it should for jurisdiction shopping Spectrum charges Levies to fund local regulation
In Colombia there is currently no Sector specific taxes production and public Current battle
be independent of the structure of the Luxury taxes television over encryption
difference in the regulatory treatment of sector and technologically agnostic.
services provided by internet companies The rules should not vary depending on
and traditional telecommunications and Universal Access/ No regulation. Obligation to provide basic set of Included as license No regulation
who the provider is, which technology Universal Service No obligations to services at affordable prices and wide obligation for broadcasters.
television companies. A new regulatory is used or the physical location of contribute to funds coverage (“carrier of last resort”) No obligations for others
framework should ensure that all Contribution by telcos to universal
the technology. What matters is the service fund. Included as license
companies, regardless of the technology service users receive, which for them obligation for mobile operators
they use to provide the service, satisfy is equivalent; having more providers
SOURCE: NERA ECONOMIC CONSULTING
the same level of user protection and means there will be more choices in
have equivalent tax burdens. The terms of quality and price.
government should use schemes for
cooperation and information exchange Public policy recommendations BENEFITS
with other countries to ensure FOR USERS
regulation compliance, regardless • Regulation should avoid be established, with
of the home jurisdiction of the distortions that are the same conditions Regulation on a level playing
artificially harmful for for all players. field that treats all providers
service provider. some providers to the • Regulation must ensure the same will encourage
detriment of others. that new digital ecosystem competition, generating
• To encourage innovation services give users the
and competition, same level of protection consumer surplus in the
regulation based on and transparency as form of price, supply, quality,
minimum criteria should existing services. diversity and innovation.
10 11
REGULATORY MODERNISATION: COLOMBIA REGULATORY MODERNISATION: COLOMBIA
PUBLIC POLICY RECOMMENDATION
3 Enhance user experience
by encouraging competition
in quality of service Indiscriminate
use of jammers
The number of users varies
from cell to cell
People move about, traffic
varies, accidents happen,
Quality of service is a very broad, difficult
to define concept5. Telecommunications Principles of and amplifiers
congestion occurs, protests
take place, groups gather,
service providers combine quality of regulatory modernisation events are held, etc.
service parameters to meet their specific
requirements. By differentiating their Legacy regulation persists in the dynamic
products and services and tailoring them digital market, for example setting blanket FACTORS
to all types of users, they ensure user standards of service quality for mobile The distance AFFECTING In a single cell the
satisfaction. Competition based on quality
of service is therefore a key differentiator
networks. A modern regulatory framework between the terminal and QUALITY number of users varies
must recognise that network performance the antenna varies when depending on the time
in the competitive marketplace. expectations change according to the users are in motion and the day
needs and circumstances of each user
To have quality services, it is first of all (i.e. a single user can have different
necessary to ensure there are no barriers needs depending on whether they are
to two basic inputs: spectrum availability travelling, working, at home, or consuming
and favourable conditions for infrastructure entertainment). Obstacles between The consumption
deployment. It is also essential to consider terminals and antenna, pattern in each cell
that factors beyond the network directly Absolute parameters of quality that do whether fixed (buildings) varies significantly
affect user experience and therefore the not evolve with the market or adapt to or moving (vehicles) throughout
perception of quality. These can include the day
specific conditions of place, time and
anything from the number of users in a cell space can become obsolete, irrelevant or Weather,
to traffic jams, public protests, the distance even onerous, without generating tangible especially rain
between the terminal and the antenna, benefits. It must be ensured that users have
jammers and the weather. the best possible quality and the same
protection and rights for similar services.
In Colombia quality of service is governed This means shifting to an approach
by Communications Regulation Commission based on customer perception, reducing
(CRC) Resolution 3067 (Quality Indicators indicators and granularity, and promoting
Public policy recommendations
for Telecommunications Services and self-regulation schemes that include
other provisions) and later additions and voluntary publishing of surveys. It will also
• Regulation of quality
of service must focus
of protection
and transparency as BENEFITS
amendments (CRC Resolutions 3503/2011
and 4000/2012). These provide details
be necessary to review the monitoring
and control scheme so that fines can be
on creating transparency
in the information
existing services. FOR USERS
• Any ex ante regulation
of indicators and the measurement reinvested by companies. available to users, of quality should be
methodology applicable to each service, comparable to and in accompanied by studies
line with international Consumers will have
including municipalities for which statistics to assess the cost-benefit
greater transparency
standards and the ratio based on real data
must be reported. In the last few years the market context. to be able to decide
Colombian government has maintained a and market studies. Using
• There should be a these studies, the utility which products and
strongly sanctions-based regime in relation guarantee that new digital to consumers can be providers best suit
to quality of service. This approach could ecosystem services will evaluated when a specific them depending on
have unwanted consequences such as give users the same level regulation is implemented. their needs.
discouraging innovation, distorting the
market, reducing supply and lowering efficy
and competition.
5
For more information about Quality of Service, see visitar http://www.gsma.com/latinamerica/qos
12 13
REGULATORY MODERNISATION: COLOMBIA REGULATORY MODERNISATION: COLOMBIA
PUBLIC POLICY RECOMMENDATION
4 Create a single converged
regulator to act across the
digital ecosystem
Convergence has brought competition not
only from new providers with or without Principles of
their own network, but also from the entry
of companies that cross the boundaries
regulatory modernisation
between traditional telecommunications and Different institutions have different
television services. objectives and functions. Under the
principle of functionality-based regulation
Colombia has several bodies that incorporating all the elements of the
regulate activities of the Information and digital ecosystem, consideration should
Communications Technology sector. The be given to changing the number of
Communications Regulation Commission regulatory bodies in Colombia. This will
(CRC), attached to the Ministry of reflect the regulatory needs demanded by
Information and Communications Technology a convergent ecosystem in which ex post
(MinTIC), watches over the healthy regulation predominates over ex
development of the sector and regulates ante regulation.
the activities of the economic agents that
provide telecommunications services. The This recommendation is line with the
National Spectrum Agency (ANE), also part OECD Review of telecommunication
of the MinTIC, plans, allocates, monitors policy and regulation in Colombia6, which
and controls radio spectrum. The National
Television Agency (ANTV), an independent
suggests that an independent converged Public policy BENEFITS
body, is responsible for monitoring access to
regulator “(…) would be better placed to
assess the implications of video content recommendations FOR USERS
television, ensuring information pluralism and and bundles in the competition dynamics
impartiality, and competition and efficiency of these markets”. The OECD outlines • Amending the institutional
in providing service. The Superintendence its arguments in favour of regulation framework to create a single The existence of a single institution must be
of Industry and Commerce (SIC) monitors regulator by merging CRC
of telecommunications markets by and ANTV will give rise to reflected in coherent decisions that include
competition, consumer protection, industrial independent regulatory bodies which, the entire ecosystem rather than just some
a convergent regulator that
property and personal data protection. “if well designed, should enable a clear can analyse, regulate and elements. It will also maximise the benefits
separation between industrial policy and promote the harmonious of convergence by promoting it and
The involvement of several bodies in sector and competition regulation, and development of the removing artificial barriers.
developing public policy for digital services reduce exposure to political drivers in any entire digital ecosystem.
(CRC, MInTIC, ANE, ANTV, SIC) can lead Under this premise, such
regulatory action”7. a regulator must also Decision making will be much quicker
to asymmetric regulations that do little and easier, responding appropriately to
incorporate the ANE, which
to create legal certainty and generate administers one of the key a sector in constant evolution. There will
inefficiency in decision making. resources for providing be fewer barriers to entry and operation,
telecommunications and and greater diversity in the provision
broadcasting services. ANTV
should remain solely as a of services, resulting in incentives for
content regulator. innovation and competition.
6
OECD Review of Telecommunication Policy and Regulation in Colombia” http://www.oecd-ilibrary.org/science-and-technology/oecd-
review-of-telecommunication-policy-and-regulation-in-colombia_9789264208131-en, OECD 2014, p. 146
7
“OECD Review of Telecommunication Policy and Regulation in Colombia”, OECD 2014, p. 143
14 15
REGULATORY MODERNISATION: COLOMBIA REGULATORY MODERNISATION: COLOMBIA
PUBLIC POLICY RECOMMENDATION
5
IMPACT OF REFORM ON SECTOR-SPECIFIC TAXES BY 202110:
Remove sector-specific taxes
to allow greater affordability and TOTAL MOBILE MOBILE NEW SITES GDP EMPLOYMENT TOTAL
universalisation of service CONNECTIONS* BROADBAND
CONNECTIONS*
/ UPGRADED
SITES
TAX REVENUES
Removing the
Consumption
Telecommunications are a necessity, not “Broadband should be made increasingly Tax on +440,000 +312,000 100/170 +US$ 1,400 +1,200 +US$ 100
a luxury. High taxes have been proven to accessible and affordable to people living Voice Usage million million
result in higher prices for users. A higher in rural and remote areas […] Sectoral
tax burden increases the price of services, over-taxation should be avoided and public
leading in turn to lower consumption and authorities can also establish incentives and
Removing
exclusion of those at the bottom of the finance networks when markets alone are the FONTIC^ +250,000 +178,000 340/590 +US$ 900 +2,700 +US$ 119
income pyramid. unable to meet the demand”. contribution
million million
Digital inclusion is a development goal A complete rethink is necessary of the
of most countries, to the extent that the purpose and reach of revenue collection * ADDITIONAL CUMULATIVE EFFECT OVER 2016-2020, OTHERWISE FIGURES SHOW ADDITIONAL EFFECT IN 2021;
right to internet access is recognised through the ICT Fund (FONTIC), because ^ FONTIC: FUND FOR INFORMATION AND COMMUNICATION TECHNOLOGIES
as a human right. If digital services are these days obligations to reach remote
drivers of inclusion, development and areas, at least as far as mobile services are
productivity, they should have better concerned, are met through the coverage
tax treatment. The government should requirements of spectrum licensing.
implement support policies, such as a Further taxation on mobile services would Public policy recommendations
more balanced tax structure, so that the make no sense, unless contribution to the
mobile industry can develop and deliver fund is removed for these circumstances
• To reduce affordability
barriers, the Colombian
connect more than
310,000 Colombians to
BENEFITS
the benefits of digital inclusion8. or the extent and use of the fund are
redefined to take all digital service
government could mobile internet. FOR USERS
remove VAT on • All the stakeholders in the
Mobile operators in Colombia paid providers into account. mobile handsets and digital ecosystem should
more than USD 1.36 billion in taxes and smartphones, similar contribute to FONTIC, and
to the approach With a transparent, rational
regulatory fees to the government in 2014,
more than 26% of their revenue. Of the Principles of adopted for laptops and
computers.
use of the fund should
focus on universalising taxation system, the prices
of services will decrease and
total amount paid, 37% was for sector regulatory modernisation • In such a strategic
internet service.
• A rethink of the need consumption will increase,
specific taxes (Colombia is the country sector for the future for FONTIC and its incorporating more people
with the second highest proportion The diversity of fees and taxes on development of the purpose is necessary into digital services.
of specific taxes in Latin America). telecommunications gives rise to two country, taxation on to ensure it aims to
Mobile operators also have to pay other telecommunications extend ICT services
central issues: (i) the inconsistency should not distort Tax revenues should
regulatory fees, such as the regulatory between the public goal stating that into unconnected areas,
consumption and avoiding asymmetric not experience major
commission fee and fees for the use of ICT must be considered a fundamental investment decisions. tax treatment of those changes, because when
spectrum, intended to cover the costs of right and actions that make delivering • Gradually reduce or who already meet their available revenue increases,
spectrum management. this technology more expensive, thus remove certain targeted obligations through consumption also increases,
reducing its affordability, acquisition and taxes. Abolishing other regulations (e.g. leading to more revenue
The new digital ecosystem poses a complex use; (ii) because taxes affect the entire consumption tax on through spectrum
voice services could licensing conditions). from consumption tax.
tax treatment of corporate income, creating range of services differently, the notion of
a need for regional and international technological neutrality and agnosticism
dialogue to determine where certain is lost, creating distortions and allowing a
services provided to a country's inhabitants choice, through taxation, of winning and
should be taxed. According to the OECD9: losing companies.
8
For more information about the impact of taxes on mobile affordability, see 10
http://www.gsma.com/latinamerica/wp-content/uploads/2016/10/Taxation-ColombiaPager_ENG.pdf
http://www.gsma.com/latinamerica/connected-society
9
http://www.oecd.org/internet/broadband-policies-for-latin-america-and-the-caribbean-9789264251823-en.htm
17
OTHER STUDIES PUBLISHED
RESETTING COMPETITION POLICY
FRAMEWORKS FOR THE DIGITAL ECOSYSTEM
This global study on the effectiveness of competition policy provides a detailed
analysis of the principles and processes that govern today’s digital markets, and About the GSMA
argues that authorities should update their competition frameworks to ensure
long-term sustainable competition and encourage innovation.
The GSMA represents the interests of mobile
To read more, click here
operators worldwide, uniting nearly 800
operators with almost 300 companies in the
broader mobile ecosystem, including handset
A NEW REGULATORY FRAMEWORK FOR THE DIGITAL ECOSYSTEM and device makers, software companies,
“The objective of this study is to describe the competitive dynamics of the equipment providers and internet companies,
digital ecosystem as they relate to public policy in general and regulation in as well as organisations in adjacent industry
particular. It also describes why these changes challenge existing regulatory sectors. The GSMA also produces industry-
frameworks that require reforms for modernisation.”
leading events such as Mobile World Congress,
To read more, click here
Mobile World Congress Shanghai, Mobile
World Congress Americas and the Mobile 360
THE INTERNET VALUE CHAIN Series of conferences.
This report examines the market structure, economic drivers and financial
performance of the global internet economy and its respective segments. For more information, please visit the GSMA
Prepared by A.T. Kearney for the GSMA, the report assesses how the corporate website at www.gsma.com.
internet ecosystem has developed, the impact on mobile network operators Follow the GSMA on Twitter: @GSMA.
and how market positions have shifted.
To read more, click here
COMPETITION POLICY IN THE DIGITAL AGE
“This handbook is part of the GSMA’s efforts to promote a constructive
understanding of the competitive forces that shape the digital age, and the
way that growing digitisation challenges existing categories in competition
law and regulation. The focus is to show the move away from traditional
telecommunications markets to the reality of closely interacting stakeholders
in the internet value chain and how this impacts competition policy.”
To read more, click here
SPECTRUM IN LATIN AMERICA
“Over the last six years, mobile operators in Latin America have invested more
than USD $11.2 billion in the acquisition of new spectrum. To date, the average
allocated spectrum per country in the region is 311 MHz, 40% more than in 2012...”
To read more, click here
MOBILE QUALITY OF SERVICE
“Mobile quality of service does not depend solely on the number of antennas
installed. Unlike fixed networks, several factors affect network performance…”
To read more, click here
DIGITAL INCLUSION AND MOBILE SECTOR TAXATION
“One of the key barriers to affordability is the high taxation of mobile services.
The GSMA has commissioned Deloitte to prepare a series of analytical studies
on the tax situation in countries across the region...”
To read more, click here
FIND MORE PUBLICATIONS IN THE RESOURCES SECTION OF OUR WEBSITE:
HTTP://WWW.GSMA.COM/LATINAMERICA/RESOURCESTo read and download the full report,
please visit www.gsmala.com
GSMA HEAD OFFICE
Floor 2
The Walbrook Building
25 Walbrook
London EC4N 8 AF
United Kingdom
Tel: +44(0)20 7356 0600
Fax: +44(0)20 7356 0601You can also read
